1.10 - Liability of Partners - Incoming and Outgoing Partners

Question 1

What does S.17 state about incoming partners?

Answer 1

Incoming partners are not liable for the pre-existing debts of the firm (Unless new partner accepts by agreeing to a novation)

Question 2

What does S.17 state about outgoing partners?

Answer 2

Retiring partners remain liable for debts incurred before retirement

Question 3

How may a retiring partner be discharged from any existing liabilities?

Answer 3

By an agreement to that effect between himself, members of the firm as a newly constituted partnership and the creditors

Question 4

A retiring partner is also liable for future contracts with people who are customers of the firm, unless…

Answer 4

Notice of the retirement is given to those existing customers

Question 5

What is a sufficient notice for potential future customers who are aware the partner was a member of the firm?

Answer 5

A notice in the London Gazette